Welsh Government insists it's right in Treasury dispute

A Welsh Government spokesman has further clarified why Finance Minister Jane Hutt is sticking to her guns in a disagreement with the UK Treasury. The dispute is over whether or not Wales has received a share of spending on the controversial HS2 rail scheme.

The Finance Minister's letter to the Assembly's Finance Committee is accurate. At the Spending Round in June, the UK Government allocated funding for HS2 in 2015-16 through the UK Department for Transport capital budget. This contributed to an overall increase in the DfT capital budget from £7.5bn to £9.5bn in 2015-16 - a £2bn increase. This increase includes funding for HS2. The Welsh Government received a capital consequential of £84.5m from the £2bn overall increase in the DfT capital budget.